Accounting, reporting, and tax functions. He last held the position of SVP of Finance and Corporate Controller before being promoted in 2018 to CFO. Prior to joining AerSale, Martin was the Senior Director of Corporate Accounting for Florida Power & Light, the regulated utility of NextEra Energy. Martin began his career as Senior Auditor for Deloitte & Touche, and joined Bacardi in 2003 as Account Manager, overseeing financial responsibilities for the marketing functions and establishing the company's first financial planning and analysis team. Martin's gonna begin with a presentation, and then there will be time for questions at the end. Thank you for the introduction. Well, you know a lot about me right now, but let me show you a little bit about AerSale Corporation. Important notices and disclaimers, I'm not gonna go through these, but this presentation will be available on our IR website at ir.airsale.com. Wanted to start with our investment case summary. AerSale has demonstrated a 10-year compound annual growth rate of 6.7%. We do that through our diverse platform to drive near-term growth, and that's gonna be expanded by three MRO expansion projects that are gonna come online by 2025. Our asset management business provides unique value extraction model, where we monetize mid-life equipment through whole asset sales, specialty leasing, and parts, which we call used serviceable material. Engineered Solutions provides long-term growth opportunities and a margin expansion opportunity as well. Margin improvements will be driven by the MRO expansions coming online, as well as leveraging higher sales, both from the asset management side and from the engineered solution side. The company operates under two segments. Our asset management business has been two-thirds of our overall business. That is where we monetize our mid-life equipment. Our Tech Ops side, which is where our on-airport MROs and our component MROs reside, as well as currently our Engineered Solutions products reside. We operate a purpose-built model that provides end-to-end support for commercial aerospace. We take advantage of the full life cycle of an aircraft. We can receive assets, and we do storage and preservation. This was key during COVID, where we had over 500 assets in active maintenance programs. We can restore those assets. We can reconfigure them, we can repaint them, we can repurpose them. We can actually give an asset a second life as a cargo aircraft. We've done water tankers for fighting fires or changing the configuration. We've done everything from a high-capacity aircraft to a VIP aircraft. And we recycle the material. Those overall parts and components, we will overhaul, and we'll sell them as used serviceable material. With whatever remaining material remains, we'll recycle it, and we'll do those repairs through our component shops. We do composites, we do accessories, and we do landing gears. And we can also do innovative products through our engineered solutions. We have three supplemental type certificates. We can also do product manufacturing authority, so we can create new parts, and that is really, right now only focused on supporting our STCs, but is a future growth opportunity, and doing DERs, which are coming up with new innovative solutions to repair parts. We reassemble, and then we redeploy those overall assets, either as aircraft or engine sales or leases, or as USM. This is an integrated business model, and at least two-thirds of our customers take advantage of at least two of our overall services, and that provides us a pretty wide array of customers, from airlines, lessors, MROs, and parts brokers. Our asset management side, I'll start with the leasing and trading, is mainly supported in our global office in Miami, Florida, with support from our Irish office. We focus on mid-life assets. We either put them out on sale, where we grab some of the best assets in a fleet, and we'll then remarket them. Or we'll grab some of the best components of an asset, engine or airframes, put those together, and then take opportunities in the market to sell them. Or we can put them in our lease portfolio. We are not a typical leasing company. When we put an engine out for lease, it is pretty much a short-term engine lease. So we get a premium, just like a rental car company does, versus a long-term leasing company, and getting that overall return. And it's also perfect for our assets, 'cause we're not buying brand-new assets, so at most, these are halftime engines. So great overall returns. We also structure our aircraft leases to be specialized, where every single item that a lessee is paying for maintenance, we keep, and we provide full support of those overall aircraft, which allows us to get a much higher return than the typical 1% monthly lease rate factors that the new, the new production guys get. On the used serviceable material side, we'll grab those overhaul components, we'll repair them in our overhaul component shops. Engine material, we'll send out to third-party shops. And that USM is in very high demand. There's not enough USM to satisfy customer demand, and that is because it provides a 70%-80% cost advantage over OEM new, yet it's the same high-quality material, refurbished to those overhaul standards. We focus on all stages of aircraft and engines. Our asset management side is specifically focused on the mid-life space, 'cause these are the assets that have exited the OEM warranty period and have started transitioning from tier one operators that have very strong balance sheets, have spare engines, have inventory balances to tier two, tier three carriers that need more of the goods and services that we can provide. What's important to note is the life cycle of an aircraft is long, and even as assets start to kind of move off the mid technology, and they're getting into the older technology space, they can have second lives as passenger aircraft, and that's what we've seen with 747s, 767s, and with 757s that we've done recently in conversion programs. What's also important is we've been making strides in also getting into new technologies. Our MRO spaces have already been working on 737 MAXes for carriers, A320neos, specifically in storage, with the geared turbofan issue that's affecting a lot of operators, and we're making investments and being able to repair components also for the new technology space as we start to prepare our evolution, as these assets start to age and start to become mid-technology assets. When we deploy capital for feedstock, we follow a very disciplined approach using our proprietary models that have over fifteen years of history. But we don't only rely on the past. We get inputs from the future or from the current environment, from our operating folks, from our MROs. They tell us what's in demand, what our customer needs. Our leasing folks are out in the market understanding what the market wants, what the overall rates are demanding, and for USM as well. So we understand all that. We understand what the scrap rates are. We pull that all into our multidimensional value extraction model, and we target a 25% IRR. We've deployed over $1.5 billion, and we have been slightly below that overall target at 24.8%. But it is important we follow this disciplined approach in all cycles. Moving to the TechO ps side and our MRO facilities, and I'll get into greater details, but we'll talk about our structural component MROs, our landing gear MRO, our accessories MRO, and our on-airport airframe MROs. Starting with our on-airport MROs, our largest facility is in Goodyear, Arizona. We also have a facility in Roswell, New Mexico. It has a very large storage field. This is where we were hosting most of the assets that were under the storage program during COVID. And then our newest facility came online in the Q2 in Millington, Tennessee. That provides us four hangars and 12 bays and over 500,000 sq ft to do third-party aircraft. And that is supported by over 300 highly skilled engineers and mechanics that allow us to do this. In our component MRO side, we have a facility in Rio Rancho, New Mexico, which we repositioned as a landing gear shop, and two facilities in Miami, Florida. The landing gear shop is an interesting dynamic. We were working with a customer and managing their aircraft and managing their landing gears, where we saw an opportunity where there wasn't enough supply of qualified repair shops to meet the demand. Landing gears are a time-based component, so we understood that even during, because of COVID and planes were on the ground, the minute those assets were going to be reactivated, that work was going to be required. So rather than going out and buying a landing gear shop, we repurposed our facility in Rio Rancho, and that came online during COVID. Through that period, we have been working to get a customer base in that overall unit, and last year we made significant strides in that we got two U.S. operators that have committed to start sending us parts, as well as an OEM that deals with regional aircraft that is also providing us gears. We are already working with two additional opportunities, one in the cargo side and one in the passenger side, for additional capacity. As we increase the throughput through these overall units, that's not only going to increase revenues, but it's going to increase our utilization of those facilities, which is going to translate into higher margins. Our accessories shop in Miami does hydraulics, electronics, wheels and brakes, power generation, fuel components, and we are going to get into pneumatics, which I'll get into the next page. Our structures shop we bought in 2019 has had a diverse set of customers, both on the passenger, cargo, and military side, and has always been constrained by its capacity. And looking at those existing facilities, we went through and pursued three CapEx projects, spending over $25 million to enhance our capabilities. In the structures shop, we went in from a facility that was less than 30,000 sq ft, and we're moving into a facility that's 90,000 sq ft. So that'll allow us to grow that facility at least by three times. But it also showcased the ability for us to handle large overhaul customers. So we believe that's going to give us an access to newer customers that's going to help that overall growth. Pneumatics capabilities, we do hydraulic work right now, and customers have asked us if we can move into overall pneumatics. We've done that, and we believe that's going to be as large or larger than our hydraulic business. But we didn't only focus on the mid-life assets. We invested in equipment that can service the latest and greatest technologies, such as the A350 or the seven, the 777. And again, part of our strategy to start moving into the newer technology space so that we can support those assets as they age. Last but not least, the Millington, Tennessee, facility, which came online in the Q2. That's about 112,000 sq ft, and again, gives us a central location in the US to be able to service customer aircrafts. These we expect to start contributing in 2025. Our pneumatic and structure expansions have faced some delays, primarily in construction and getting equipment, but those are now scheduled to start coming online in the Q4. Our Millington facility did come online in the Q2, but right now it's going through an overall kind of learning phase, so we really expect contributions to start next year. Engineered solutions. Engineering has always been a critical part of AerSale. For us to effectively monetize used equipment, we need to effectively come up with solutions for government mandates or to make the aircraft more efficient, to make it more attractive to operators versus newer assets. AerSafe was the first product that we did this with. There's an FAA Airworthiness Directive called the Fuel Tank Flammability Reduction Act. That came out of TWA 800, which had an empty fuel tank, and there was a spark in that fuel tank, and that caused a tragic destruction of that aircraft. The FAA says this cannot happen again. Two solutions were provided. You can put a nitrogen system, which removes the oxygen outside of the fuel tank. No oxygen, no explosion. That's what the OEM solutions are. Both Boeing and Airbus have that. And the other was to put military-grade polyurethane foam inside the fuel tank that would also not cause an explosion to occur. We're one of two providers of that overall product. This was done because we wanted to get one of our 737s out to a customer. We reached out to Boeing. Boeing said, "There's an over one-year lead time and a very high price." Our engineering guy said, "I can come up with an alternate solution in less time and more cost-effectively." We did, and we got our asset out. What we quickly learned is just like we benefited from it, other third parties could benefit from it as well, and once we had incurred the R&D dollars, margin profiles were very strong, over 50%, so we pursued additional platforms. Same thing when ADS-B Out came in, which is a transition from old-school radar to tracking aircraft through GPS. We went through and incorporated components into the aircraft to meet that overall requirement. AerSafe and AerTrak is what caught the attention of Universal Avionics, which is a subsidiary of Elbit Systems. They had two interesting military technologies that they approached us with, which we market as AerAware. One is an enhanced flight vision camera that was originally designed for helicopters when they were landing in desert conditions to see through the sand. That same technology can see through fog, smog, heavy rain, so it gives pilots a 50% visual advantage over the naked eye in inclement weather conditions. So when others cannot land and they have to divert, our pilots can effectively land safely in the overall aircraft. Put that with the same SkyLens, which is the glass that is in military aircraft on the helmet of the pilots of military aircraft, that give the pilot all of their instrumentation that they can safely land the aircraft without having to look down on the cockpit. Now, this exists in old-school head-up displays that are fixed displays right in front of the pilot, and as long as the pilot is looking straight at it and the plane is pointing where it wants to go, he can see his instrumentation. But start landing in a crosswind where the plane is coming in sideways and you're looking at the side, you're not looking at the runway. So that ability to look at a 120 degrees from left to right is a huge overall advantage, and we're hearing it more and more from airlines that for newer pilots, and we've had a lot of retirements of experienced pilots over through COVID, and now we have a lot of pilots that are transitioning from the regional space into the commercial space, and they're starting to fly the narrow-body aircraft. So giving them a tool that can effectively have them land in kind of what they call energy management, so effectively landing the aircraft without hard landings, overshooting the runway, coming in short, and having to abort the overall landing, are key safety aspects of the product. I believe a picture's worth a thousand words, so this is a very short video of the AerAware solution. I do encourage you to go to our website at aersale.com and under Engineered Solutions, and we have a much longer video as well as some pilot testimonials. Put all of this in a very strong market dynamic for aftermarket MRO services and parts support. During COVID, there was a great reduction in demand for passenger travel. That has completely come back to pre-COVID levels. The number of stored aircraft has gone down as all of those assets are trying to meet that overall demand, as OEM supply of new aircraft is still overall low. With that, MRO is expected to continue to grow at 2.8%, or sorry, 1.8%. We don't expect to grow at that overall levels. We expect to get market share based on the new capabilities and the new capacity that we're adding into the overall market. Even overall, as retirements, aircraft have not retired because of that delay in OEM. There's still about 50% of assets that are in storage that have been there for over a year. So that are gonna be our future feedstock that's gonna help grow our asset management business. When that overall production of new aircraft delivery starts to come back online, and if you believe Airbus and Boeing, that should be as early as 2024 and through 2025, you'll start seeing some of those new assets start to replace some of the mid-life equipment. That'll be a great opportunity for us to deploy capital and feed our asset management machine. But again, when exactly that will happen, it's hard to tell, overall. We operate over all cycles. After the Great Recession and the financial meltdown in 2019, great opportunity to deploy capital. You know, overall, economy was down, deployed a lot of capital overall, fed that into the overall business. Every time that we deployed capital in the feedstock, it's been a growth opportunity for the asset management side, and that's exactly what we believe on the capital that we deployed in 2023. But also important to note, starting in 2017, we made a deliberate effort to start growing our Tech Op side. As you can see, that part of our business has continued to grow, and we are committed to continue to do that, as we're showcasing by putting $25 million of CapEx to continue to add capabilities in our Tech Ops portfolio. Giving a summary of the last six months overall, we've had improvements since prior year. Overall, our asset management side has been at $100 million, so still about two-thirds of the business, and our Tech Op side, about a third of the overall business. Even though there's been improvement from last year, we can do a lot more. Honestly, once we start monetizing the assets that we've purchased, you're gonna see improvements on the asset management side. When we start getting returns on the CapEx investments that we've made, we're gonna see improvement in the Tech Ops. Add to that, the opportunities of AerAware, the resurgence of AerSafe. There's a lot more that we can do with the infrastructure that we have today. Even though we deployed a lot of capital in the last few years, we still have a strong balance sheet. We still have about $98 million available in our revolver, but more importantly, we have a strong inventory position that we're gonna start monetizing, and we're gonna start recycling that cash to continue to grow the business. What are our near-term financial drivers? Again, we want to continue to support the business in this very strong commercial backdrop that's benefiting both our asset management and MRO sides. Our MRO expansion projects that are gonna be additive in 2025. But we're also focusing, and I haven't talked too much about this, on our monetization strategy for the 757 passenger aircraft that we have in our portfolio. For those of you who are new to the story, we bought 757s from American Airlines, and we had a great program supporting the cargo industry during the COVID period. That has slowed down, and what was an aircraft that we were pre-selling, now we have seven of them that are uncommitted. We're working on the overall dynamics. We still feel good about the economics of this aircraft. From a narrow-body aircraft, this has a very strong payload, has a long range, and these are also the newest and most recently converted 757 in the overall market. So very attractive propositions for all of the operators that are currently have 757s in their fleet to potentially replace these assets, and we can take those in trade and use these assets, which have heavy landing gears, fresh C checks, they're cleared on D checks, they have winglets, they have the glass cockpits. These are some of the best 757 s overall. But we're also gonna look at opportunities on leasing some of these assets, and although this will be a longer monetization strategy, it'll still provide us a good return and recovery of our initial investments, and we're gonna continue to progress towards our AerAware launch order. We've talked about the strides that we've done with our potential launch customer, which is a U.S. carrier. We continue to operate with them and work with them. In fact, we flew with them just a few weeks back. We are continuing to progress to getting that initial order. And for capital allocation purposes, we're gonna continue to follow our strategy, where it merits it. We're gonna do strategic investments behind our MRO capacity to continue to grow that business. We're gonna continue to be disciplined on our feedstock acquisitions, only pursuing transactions that will get our 25% ROI and that fully take advantage of our multidimensional value extraction model. We're seeing a lot of opportunities where people are taking short-term increases in the pricing, and they're buying that way. We know that the market is much longer than seeing out for the next three to six months. So we're gonna continue to be disciplined as we deploy capital. But it's important to note, and as I mentioned earlier, when we have deployed capital through feedstock, that has been a catalyst for revenue growth, and we did that in 2023, so we feel good in how we entered 2024, and we're gonna continue through 2025. In conclusion, again, demonstrated a 10-year revenue compound annual growth rate of 6.7%. We have a diverse platform, and we're excited about the contributions from the three MRO expansion projects. Our asset management business provides a unique value extraction model that we're poised to take advantage of, especially as new OEM production improves. Our engineered solutions provide long-term growth, and we are working and expect margin improvements from those MRO expansion projects and the opportunities on the asset management side, as well as from the engineered solution side. So with that, I'll take some questions. Maybe just to start on the USM business, what% of the overall parts market is USM today, and where do you see that trending? I think overall, USM has been a small overall component. I don't know the specific amounts. What we've always noted is there's not enough well-priced USM to feed the market. If there was no OEM production, the aircraft would be grounded, kind of overall, but you need to be strategic in what you go out and buy. You've got to make sure that you're buying something that's in demand, that there's a good fleet out there in the overall market, and once you can provide that, and you provide the cost advantage, in good times and in bad times, operators are always gonna choose to take the USM route. Are there any operators that are harder to infiltrate than others, or is everyone open to it? I think MRO acceptance has gotten much more broad. There were a lot of Asian customers that wouldn't take MRO. There's still some of that stigma on PMA parts, but definitely I think during COVID, especially with kind of a reduction in supply of new OEM, there's been a whole lot more acceptance on the USM material. And how do you think about price versus volume in the aftermarket today and into the next three years? So in the overall, from the asset management side? Yeah. Yeah. So again, we're seeing limited amount of transactions coming through. When feedstock becomes available, if it's a flyable asset, an operator will pay up because they need to lift. And again, we're not - we don't operate that way. We're gonna operate in monetizing that asset, either as a whole asset sale or as a, as a lease or USM. So we find that to be kind of a competitive environment, where if we don't stay disciplined, and some of our competitors have not, you can get into trouble down the line. As production of new OEM improves, you're gonna start seeing a lot more feedstock. Again, that'll normalize prices, and it'll make sense to support the USM market. Can you provide mix in engine versus non-engine revenue in MRO and also, to the extent that you have it, in asset management? So on MRO, we do not have engine shops, so everything that we do is on the component side or the overall airframe side of the overall business. On our USM side or leasing side. Leasing side, easy. It's all engines. We've sold all of our aircraft during the overall COVID period, so we have our engine leasing. USM has always traditionally USM material is more expensive than airframe material, so it's always been about two-thirds engine material and 1/3 airframe material. How do we think about the growth profile of asset management versus Tech Ops over the next five years? We feel bullish on both opportunities. On the asset management side, again, we've been expecting an increase in retirements. Again, when OEM production improves, that increase in retirements is gonna come, and we have a great opportunity to take advantage of that in that overall business. On the tech op side, again, based on the investments that we've made and the available capacity that we have, we also expect to grow that business going forward. Yep. A quick question. Sure. How much money did you spend from American on the seven planes? How long will it take to monetize that? And from a cash flow point of view, thinking of those planes and the rest of the money that's tied up in the company. Mm-hmm. When that's unleashed, how much capital are we talking about getting unleashed? So we haven't disclosed exactly how much the investment is in the 757s, and we do that for competitive reasons. If we give you the price, you divide it by seven, you can pretty much know what our cost is, and that doesn't work for us from a negotiation standpoint overall. As far as monetizing those assets, we are looking at putting those assets and trying to sell them. But if we go down the lease route, these planes can operate for six years. So potentially, if they go out on lease, it could be a six-year return on investment on those assets. Are they fully airworthy now, or are they in an intermediate stage of- Three are complete, and the other four are pretty much in finalization stages. So within a couple of weeks, they could be made available. Do they have engines? They do have engines, yes. They all have RB211s. So it should be, like, $20-$25 million or something. It's not, like, $5 or $10 million. Yeah. Overall price of, of selling? Yes. They're a significant amount. Yeah. Now, the good thing is we can monetize those assets in a lot of different ways. The RB211 engine is in high demand. We could always get those engines and put them out on lease or put them out on sale. The highest use right now is to sell those or lease them as full aircraft. Given the capital needs in the next year, I mean, obviously, you've spent a lot of capital on- I think at this point, we have the opportunities to start kind of recycling some of that capital and start making returns, and that's gonna be our focus. It's harvest time. It's harvest time, exactly. You mentioned harvesting inventory. Were you talking about the 757, or are there other assets and engines you're looking to sell? There are other assets. So when we look at the feedstock that we deployed in 2023, those are assets outside of the 20, the 757s. Could you just detail what types of assets those are? 737s, 767s, CF6 engines, PWs, V2500s. It's a good, broad section of the market. When you buy feedstock, is it -t hey're aircraft? Yes. Yes. You part out, or are you buying stuff that- No, no. you part out? We buy full aircraft or full engines, and then we part them out. We don't manufacture anything, so we're buying these overall aircraft, and then we'll refurbish them. We'll sell them in the overall market, or we'll overhaul the engine and the airplane, and we'll put it out to the market. And what are the puts and takes with the tightness in capacity and aircraft not leaving the fleet? When do you expect retirements to normalize? I'm sorry, can you repeat that? When would you expect retirements to normalize and additional feedstock to be unlocked? If you would have asked us when Boeing would have started doing you know, production again in 2019, we would have told you three to six months. So we, we lost all that bet overall. Again, that'll be dependent, but demand is extremely strong for passenger aircraft right now. So as long as the, the supply, and even not even the supply, but the visibility for these operators on when those delivery schedules are gonna be, you're gonna see them holding on to the existing fleet. Once they have better visibility, you'll start seeing those assets come out, and you'll see an increased retirements and increased feedstock opportunities for us. Out of time. Thank you. I think we're out of time, so- Okay. Thank you.